A Bulk Cannabis Pricing Model

for both hemp & marijuana

The recreational and medical marijuana markets may deal in the same plant but the supply chains are often distinct and somewhat parallel. For example, the recreational marijuana user makes buying decision of a number of factors like the strain, taste, visual appeal, as well as the THC level. The medical buyer focuses on CBD and THC levels with much less regard to looks and what strain is hot. As a result the two buyers will value the same pile of cannabis differently.

Think of raw cannabis as ore containing two precious metals: CBD and THC. Factoring weight, price, and THC & CBD levels determines the true market value of a specific pile of cannabis. Marijuana should be treated as a bulk agricultural commodity (it is) as it moves from the underground market into the legalized channel.

This Excel spreadsheet is an initial attempt at correlating cannabinoid profiles to valuation. Once a batch of cannabis has been analyzed by a lab using chromatography, both the seller and buyer know how much of each cannabinoid is involved. This spreadsheet maps the lab data into pricing. In the real world, the party with an understanding of how this model works will have an advantage over someone who just doesn’t get it.

The Cannabis Pricing Model can be used to compare two samples side by side, or multiple samples all at once. The more dissimilar two samples are the more valuable The Cannabis Pricing Model is.

Tools like this will prove to be incredibly useful as growers switch to Sea of Green (SoG), shortening their harvest cycles and changing the leaf:flower ratio. SoG produces less bulk in pursuit of fast flower harvests. This leaves processors who buy trim, popcorn, etc. scrambling to adjust their cost of goods.

The Pricing Model is free software released under a Creative Commons license (CC BY 4.0).We want any & all feedback. What would you like to see it do or not do?